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Inflation is a silent budget killer.
It causes everything to go up, from your groceries to your gas, as the purchasing power of money decreases. During a good year, it cuts your buying power by 2% to 3% — these days inflation is hovering above 8%, a level we haven’t seen in 40 years.
But what does that mean for you? With inflation running rampant, it’s affecting more people, but you don’t have to sit idly by as your bills keep getting bigger. There are steps to take — and actions to avoid — that can help you navigate this period of high inflation, for however long it lasts.
One thing that’s easy to miss with the current anxiety surrounding rising prices is that it’s not impacting everything the same, so it won’t affect every household to the same degree. Personal finance is different for everyone and inflation rates are just as different depending on if you bought a used car, how much you drive and if you have a family or are single, says Ryan Frailich, CFP and founder of Deliberate Finances, a financial planning firm.